Paint firm DuluxGroup has extended the timeframe for its $188 million takeover offer for renovation group Alesco.

Alesco’s board last week rejected DuluxGroup’s offer, deeming it too low.

DuluxGroup on Tuesday said its offer to Alesco shareholders of $2 per share would remain open to July 20, from the previous closing date of June 26.

Morningstar analyst Nathan Zaia said he believed that DuluxGroup would have to lift its bid for Alesco or walk away.

He also said that an extension of the offer period could be interpreted by Alesco shareholders as an indication that DuluxGroup was not going to increase its offer.

Mr Zaia said Alesco shareholders resisting the offer might need to rethink their position.

“I think it’s still just an ongoing bargaining thing (tactic),” Mr Zaia said.

Alesco, which supplies garage doors, construction products and cabinet and window products, has said an independent expert valued the company at between $2.23 and $2.52 per share.

Shares in Alesco were one cent higher at $2.02 on Tuesday.

DuluxGroup was seven cents lower at $2.99.